What was the total cost of company restaurant sales for Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
der's equity | 1,121,451 | | Total liabilities and stockholder's equity | $ 1,309,641 |
Consolidated Statement of Operations For the Year Ended October 31, 2023
| Royalties | $ 906,513 |
|---|---|
| Company restaurant sales | 765,521 |
| Advertising fund revenues | 268,596 |
| Rebate revenue | 140,146 |
| Total revenues | 2,080,776 |
| Cost of company restaurant sales | |
| Food and beverage | 288,977 |
| Labor | 602,817 |
| Direct expenses | 174,042 |
| Total cost of company restaurant sales | 1,065,836 |
| Operating expenses | |
| Marketing and advertising | 278,545 |
| General and administrative | 571,564 |
| Total operating expenses |
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the total cost of company restaurant sales for the year ended October 31, 2023, was $1,065,836. This figure includes several components, such as food and beverage costs, labor expenses, and direct expenses. Specifically, food and beverage costs amounted to $288,977, labor costs were $602,817, and direct expenses totaled $174,042.
These costs are important for prospective franchisees to understand because they provide insight into the expenses associated with operating a Carbones Pizzeria restaurant. While franchisees will operate independently, understanding the franchisor's costs at their company-owned location can help in projecting their own potential expenses. These figures can be used as benchmarks when creating a business plan and financial projections.
It's important to note that these costs are specific to the company-owned restaurant and may not directly translate to a franchised location due to differences in factors such as location, management practices, and local market conditions. However, reviewing these costs can offer a valuable starting point for understanding the financial dynamics of running a Carbones Pizzeria restaurant. Franchisees should conduct their own thorough research and due diligence to estimate their specific costs accurately.